Business Communication and Character

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FDIC's "Toxic Workplace" and an Activity

As Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg faces pressure to resign, students can explore what a “toxic workplace” looks like. Without getting too detailed, they could describe their own experiences—when they have felt uncomfortable during jobs and internships.

In my persuasive communication and organizational behavior classes, I used a variation of an activity from Mary Gentile’s Giving Voice to Values that could be useful as you discuss the FDIC example. In the FDIC situation, speaking up didn’t make a difference. Still, reflecting on students’ own experience may inspire them to take action and have an impact in the future.

A Wall Street Journal investigation revealed multiple leadership problems dating back to at least 2008 at the FDIC. Complaints went unresolved and sometimes resulted in promotions of those accused. Although Black employees won a $15 million class action suit in 2000, discrimination complaints continued. Workers claim that sexual harassment and bullying is part of the culture.

FDIC leadership is taking no accountability and saying little in response to the published investigation. An official told the WSJ that the agency "has no higher priority than to ensure that all FDIC employees work in a safe environment where they feel valued and respected. Sexual harassment or discriminatory behavior is completely unacceptable. We take these allegations very seriously." Students will recognize this as meaningless boilerplate. Because the story is so visible and the reporting is so clear, the agency is better off demonstrating humility—recognizing failures and, if nothing specific at this point, at least describing plans for corrective action.



Taking Action

For this activity, you’ll compare two examples from your work or other experience.[1]  The purpose of this exercise is to see how you have taken action in a situation that conflicted with your values. Then, you will analyze a time when you didn’t take action to see how you could have handled the situation differently.

Individual Planning Questions

First, think of a time when you were expected to do something that conflicted with your values, and you spoke up or acted in some way to address the situation.

  • Briefly describe the context.

  • What inspired you to do something?

  • What did you do and how did it impact others?

  • What are some things that would have made it easier for you to take action in this situation? Which of these were under your control, and which were outside your control?

  • In retrospect, how did you do? You don’t need to be too self-critical, but think about what would have been ideal in the situation.

Next, think of another situation in which you did not speak up or act when you were expected to do something that conflicted with your values or ethics.

  • Briefly describe the context.

  • What prevented you from speaking up? What would have motivated you to take action?

  • What are some things that would have made it easier for you to take action in this situation? Which of these were under your control, and which were outside your control?

  • In retrospect, what could you have done differently?

Partner Feedback

If you can work with a partner, discuss your responses and learn from each experience.

When talking about your own situation, you don’t need to defend your actions or be too critical. When you listen to your partner’s situation, you can ask clarifying questions or share similar experiences, but try not to judge the decision. Like you, your partner may be sensitive about actions taken or not taken.

At the end of your conversation, summarize the main learning points. What would you like to do more of in the future to develop leadership character?

[1] This activity is adapted from Mary Gentile, Giving Voice to Values (New Haven: Yale University Press, 2010), pp. 51–53.

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